Universities Subsidies For Graduate Students: Who Benefits?

The question of whether universities subsidize graduate students is complex and multifaceted. While it is true that graduate students often receive stipends, tuition waivers, or other forms of financial support, it is important to understand the underlying dynamics and motivations behind these arrangements. Universities typically do not bear the entire cost of graduate education; instead, they rely on various funding sources, including government grants, external research grants, and undergraduate tuition fees, to cover expenses.

Graduate students, particularly those in STEM fields, are often involved in research that brings in external funding through grants. Their contributions to research and teaching assist in securing these grants and provide valuable support to faculty members. Additionally, graduate students may work as teaching assistants, providing instruction to undergraduate students. This arrangement benefits the university by reducing the need to hire more faculty while also offering graduate students valuable teaching experience.

Furthermore, universities recognize the importance of attracting top talent to their graduate programs. By offering financial support, they can ensure that graduate students can dedicate sufficient time and effort to their studies and research without being overly burdened by financial concerns. This investment in graduate students can pay dividends in the long run, as these individuals may become renowned researchers or generous donors in the future.

In summary, universities do provide financial support to graduate students, but it is not necessarily accurate to say that they fully subsidize their education. The relationship is more nuanced, with universities, government agencies, and external funding sources all contributing to the cost of graduate education.

Do universities pay graduate students?

Graduate students are not guaranteed funding, but there are plenty of options to reduce the cost of their education. Many colleges offer paid programs and positions to high-performing graduate students. These opportunities usually come in the form of graduate assistantship programs.

How graduate students get paid

Many programs offer stipends or tuition waivers in exchange for helping professors or engaging in advanced research with department faculty. These usually take the form of teaching or research assistantships or fellowships. Some programs may also offer salaried positions to students willing to become teaching assistants or independently teach courses.

Assistantships are generally competitive programs offered to high-performing students who excelled during their undergraduate education. Fellowships are often even more competitive and can be found either internally or through an external institution.

The overall pay depends largely on the type of assistantship pursued. PayScale lists the average salary for graduate assistants as around $26,000, but research graduate assistants make a slightly higher $30,500. The Bureau of Labor Statistics' latest data shows that teaching assistants at the postsecondary level earn an average of $20,000.

That said, it can be hard to pinpoint an exact amount. Pay is based on the university attended, the program of study, and where the student lives, among other factors. Some salary averages may include an additional stipend, while others list the amount received after tuition reimbursement.

Universities pay graduate students because they want to have graduate programs. Graduate students are a source of cheap, highly skilled labour. Graduate students also help universities remain competitive in research and maintain their prestige. Graduate students can also bring in a lot of grant money.

Are graduate students considered employees?

The classification of graduate students as employees has been a topic of debate in the United States, with the National Labor Relations Board (NLRB) playing a pivotal role in shaping this discussion. The NLRB is tasked with enforcing U.S. labor laws, and its decisions on this matter have fluctuated over the years, influenced by the political leanings of the sitting presidential administration.

In 2016, the NLRB ruled that graduate students who work as teaching and research assistants at private universities are indeed employees, granting them the right to unionize. This decision marked a significant shift, recognising the dual status of graduate students as both students and workers. This ruling was in alignment with decisions made under Democratic presidents, such as Bill Clinton and Barack Obama, who favoured the expansion of employee rights to unionise.

However, in 2019, with a shift in political tides, the NLRB proposed a new rule stating that graduate students are not "employees" and do not possess the right to unionise. This proposal was influenced by a Republican majority on the board under President Donald Trump. The proposed rule aimed to reverse the 2016 decision and curb the growing wave of graduate student unionisation efforts at private U.S. universities.

The debate centres on the nature of graduate students' work. Supporters of unionisation argue that graduate students' teaching and research contributions constitute "work" and that they are, therefore, employees who should be afforded the same rights as other workers. On the other hand, prestigious universities and opponents of unionisation assert that graduate students' relationships with their institutions are primarily academic rather than economic. They view graduate students' activities as a form of training intrinsic to their education.

The implications of this debate are far-reaching. Unionisation empowers graduate students to negotiate for better pay, benefits, and protections. It also provides a platform to address issues such as sexual harassment and discrimination complaints through formal third-party procedures. By contrast, universities that refuse to recognise graduate student unions may face strikes and other forms of pushback from their graduate student workforce, highlighting the complex dynamics at play in the higher education landscape.

Do universities fund PhD students?

PhD programmes can be expensive, especially in the USA, and many students require funding to undertake them. Luckily, there are many funding opportunities available for PhD students, including fully-funded programmes.

University Funding

Many universities offer fully-funded PhD programmes, which may cover tuition fees, living expenses, health insurance, and other benefits. Funding may come in the form of scholarships, assistantships, or fellowships.

Scholarships

Many universities offer full-ride scholarships that cover tuition fees and living expenses. For example, the Fulbright Commission administers funding schemes for international students to complete their research in the USA. The Fulbright Postgraduate Scholarship, for instance, covers tuition fees, health insurance, and provides networking opportunities.

Assistantships

Assistantships are a common form of funding, providing a stipend or fee waiver in exchange for work. Types of assistantships include:

• Graduate Teaching Assistantships (TAs): Teaching and mentoring undergraduate students.
• Research Assistantships (RAs): Assisting faculty with research.

Fellowships

Fellowships are another funding option, providing financial support without additional responsibilities, as long as the student maintains high academic standards.

External Funding

Funding for PhD programmes can also come from external sources, such as:

• Research council grants
• Employer sponsorship
• Postgraduate loans
• Charities
• Crowdfunding

Do graduate students have to pay tuition fees?

Graduate students can face expenses of over $24,812 per year, and the average one-year cost for medical and law students is over $30,000. Unlike undergraduate students, graduate students are usually not eligible for federal need-based Pell grants or state-funded grants.

Graduate students can get paid through their university, but this is not guaranteed. Many colleges offer paid programs and positions to high-performing graduate students, usually in the form of graduate assistantship programs. These assistantships are generally competitive and offered to students who excelled during their undergraduate education. Students can also apply for scholarships and grants, although opportunities might be more limited compared to undergraduate programs.

Graduate assistantships can come in the form of teaching or research positions. Some programs may also offer salaried positions to students who are willing to become teaching assistants or independently teach courses. The overall pay depends on the university, the program of study, the location, and other factors. The average salary for graduate assistants is around $26,000, while research graduate assistants make around $30,500. The median annual wage of a teaching assistant in 2021 was $38,040.

Some universities might subsidize the tuition fees of graduate students. For example, Emory University in Atlanta offered to pay the tuition fees of a Ph.D. student for the first two years. However, most graduate students do not receive this kind of financial help. About 60% of graduate students do not receive any scholarships, grants, or tuition waivers.

Why do undergraduates pay, but postgraduates are paid?

Undergraduate students often pay tens of thousands of dollars per year in tuition fees. In contrast, postgraduates are often paid a stipend, in addition to having their tuition fees covered. This may seem counterintuitive, as both groups are students, but there are several reasons for this dynamic.

Firstly, it's important to understand that universities charge both groups tuition fees. However, many postgraduates receive research assistantships, where external grant money is used to pay their tuition and provide a stipend. Undergraduate students, on the other hand, typically receive scholarships that cover their tuition fees, but not living expenses.

Another factor is the nature of the work performed by each group. Postgraduates are often employed by the university, providing instruction or research assistance, and are thus paid for their labour. Undergraduate students, meanwhile, are paying for the instruction and resources provided by the university.

Additionally, postgraduates often have better employment options and more specialised skills than undergraduates, so universities need to offer financial incentives to attract them. This is particularly true for academic PhD programmes, where the time commitment and financial burden would be too great for most students without external support.

Finally, universities view having graduate programmes as beneficial to their reputation and faculty, so they are willing to subsidise these programmes, even if they are a money-losing proposition.

Frequently asked questions